An investigation has been launched against a local attorney after a client accused him of mishandling money.

The North Carolina State Bar has ordered Gastonia attorney Donald Bumgardner to turn over financial records and stop taking client money that is supposed to be held in trust.

The State Bar requires attorneys to keep their own money separate from client money that is earmarked for fees and other required payments. That client money is “held in trust.”

Lamar Russ, a former client of Bumgardner, said the decision to file a complaint was a hard one.

Russ hired Bumgardner in early 2010 to represent him in a personal injury suit. He had been hurt in a car accident while at work.

Bumgardner represented Russ, who settled for an amount of money he did not wish to disclose.

Upon settling, however, Russ knew money had to be paid to his insurance company. He said around $100,000 was to come out of settlement money Bumgardner was holding.

Within a year after settling, the money was not paid, according to Russ. The insurance company told him he could be held legally responsible for the debt.

“I was worried that two or three years from now, sitting fat and happy in my house, that I’d go to the mailbox and see a bill for $100,000,” Russ said.

So he sent off a letter to the State Bar, which later filed an injunction against Bumgardner.

“My concern is that this happened to me and it may have happened to somebody else,” Russ said. “I’m upset, yes, but people need to know this.”

According to the injunction, a preliminary investigation has indicated that Bumgardner mishandled money. That money was delivered to him in trust for the benefit of clients, the injunction said.

He has been ordered by a judge in Wake County to stop handling certain client money.

Bumgardner got the letter informing him of the complaint just Wednesday.

“We will respond appropriately,” he said.

So far, there have been no thorough investigations into Bumgardner’s accounts. He says the complaint is nothing more than that, a complaint.

“There are no findings that I’ve done anything wrong,” he said. “The grievance was filed by a client with whom we’ve had a disagreement and he had every right to file.”

The State Bar ordered Bumgardner’s trust account frozen for the investigation.

To continue with business as usual, Bumgardner said he has been authorized to use another lawyer’s trust account.

As far as what the investigation will uncover, Bumgardner is hopeful.

“I don’t think it will uncover anything,” he said.

There have been 48 preliminary injunctions made by the State Bar this year. According to Kathryn Jean, general counsel for the State Bar, a preliminary injunction is the first step in determining if there has been professional misconduct.

Bumgardner has been practicing law since 1970. He began his career as a trial attorney, and has been practicing as a civil attorney since 1990.

You can reach reporter Lauren Baheri at 704-869-1842 or Twitter.com/lbaheri.